A Study of Factors Affecting the Global Iron Ore Price

The price of iron ore is a crucial determinant of steel production costs because iron ore is the primary raw material used in steel manufacturing. Steel, in turn, plays an essential role in the economic development of virtually every country. Consequently, fluctuations in global iron ore prices have attracted significant attention from investors, mining companies, steel producers, related industries, and researchers. This study employs the Ordinary Least Squares (OLS) regression method to examine the effects of six factors, including the global aluminum price, the steel production index, Australia's iron ore exports, ocean freight rates, the Australian dollar exchange rate, and the COVID-19 pandemic, on the global iron ore price. Monthly data covering the period from March 1990 to February 2022 are analyzed. The findings indicate that the COVID-19 pandemic had no statistically significant impact on global iron ore prices, whereas the remaining five factors all exhibit positive relationships with global iron ore prices.